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Form 8854 (expatriation statement)

Filed when you renounce US citizenship or give up a long-term green card — it determines whether you are a covered expatriate.

Also called expatriation statement, exit tax form.

Initial and Annual Expatriation Statement, required under §6039G when a citizen renounces or a long-term permanent resident (a green-card holder in at least 8 of the last 15 years) abandons that status. It establishes whether you are a covered expatriate, which turns on three independent tests: a net worth of $2,000,000 or more on the expatriation date; an average annual net income tax over the five prior years above an annually indexed threshold; or a failure to certify five years of full US tax compliance. Any one is enough. A covered expatriate falls under the §877A mark-to-market exit tax, which deems worldwide property sold at fair market value the day before expatriation, subject to an indexed exclusion amount, with separate regimes for deferred compensation and non-grantor trusts. Renouncing at the consulate ends citizenship; it does not end the tax obligation until this form is filed.

Full guide

The US exit tax and Form 8854

Related

Primary source

Official guidance — Form 8854

This glossary entry is general reference, not advice for your specific return. Start your filing on the residency step.